St George Illawarra chief executive Peter Doust has labelled this year’s results as ‘‘unacceptable’’ as the club confirmed Steve Price’s sacking as coach in a video message.

Assistant coach Paul McGregor will take over in a caretaker role this season continuing his remarkable rise as coach through the ranks from Wests in the Illawarra Coal League and the Illawarra Cutters in the NSW Cup.

The Dragons posted a video on their website on Monday morning, confirming the decision to sack Price, as they try and keep their NRL finals hopes alive this season.

Doust said McGregor would takeover after the club's board resolved not to exercise an option to extend Price's contract for 2015.

“This is a difficult situation for me, Steve Price is a good friend of mine and we have worked closely together and I would have liked us to work through these tough times as one."

McGregor has returned to Wollongong, after leaving the NSW Blues Origin on Sunday, for Dragons training this week in preparation for next Monday night’s game against the Rabbitohs, although he will fulfil his Origin duties in Brisbane on Wednesday night.

Price has been under considerable pressure in recent weeks after the Dragons slumped to six losses in their past seven games. He had a contract until the end of this season with the club having an option on his services for next year.

Dragons players were told of Price’s axing early on Monday morning.

He was granted a one year extension early last year. The Dragons started the year well winning their opening three games.